BANGKOK– China and the European Union are open to talks over the EU’s recent decision to sharply increase tariffs on imports of Chinese-made electric vehicles, officials on both sides say.
China’s Commerce Ministry and Germany’s Economy Minister said over the weekend that both sides were willing to hold talks on the issue. Meanwhile, Chinese state media said on Monday that Beijing is pushing for the EU to abandon its plans to dramatically increase provisional tariffs on imports of electric vehicles made in China before July 4.
Intensifying a trade dispute over subsidies from Beijing that Brussels worries are hurting European carmakers, the EU plans to impose provisional tariffs of 17.4% to 38.1% on China’s electric vehicles for four months to starting July 4th. That’s on top of 10% tariffs for everyone. imported electric vehicles. They would apply to vehicles exported to Europe by both Chinese and foreign brands, including Tesla.
The European Commission, the EU’s executive arm, said preliminary results of an investigation into Chinese EV subsidies showed the country’s battery electric vehicle “value chain” benefits from “unfair subsidies.” that harm the EU’s rivals.
Trade Minister Wang Wentao held a video conference with European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis, China’s Ministry of Commerce said in a notice Saturday on its website.
“Both sides agreed to start consultations on the EU’s anti-subsidy investigation into Chinese electric vehicles,” he said.
“The doors are open to debate. And I hope this message has been heard,” German Vice Chancellor and Economy Minister Robert Habeck said during a visit to China on Sunday.
In Berlin, German Chancellor Olaf Scholz said he had pushed hard for the EU to offer China more talks when it made its decision on the tariffs.
“There is still a little time until July 4,” Scholz said in a speech to the main industry lobby group in Germany, which has Europe’s largest economy. “But it is clear, of course, that we will also need serious moves and progress from China.”
“It is important that the EU seizes its opportunity until the end of the month, but also that the Chinese government seizes its opportunity to reach an agreement,” he said.
“For us it is no small matter,” Scholz added, highlighting the strength of Germany’s exports and its car sales to China. “Our industry relies on global competition; “That is perhaps the difference between the German business and industrial model and others, where protectionist measures generate more enthusiasm.”
China’s Ministry of Commerce on Thursday accused the EU of making unreasonable demands in its investigation into Chinese electric vehicle imports before announcing it would increase tariffs by up to 38%.
Ministry spokesman He Yadong said the European side had demanded excessive amounts of information from Chinese automakers and then unfairly accused Chinese companies of not cooperating.
Beijing said last week it was opening a antidumping investigation in pork exports from Europe. In announcing that, the Ministry of Commerce did not mention tariffs for electric vehicles. But the investigation into various pork products was widely seen as a response to EU measures on electric cars.
The European side has said it wants to discuss the results of its investigation with the Chinese authorities to find ways to resolve the problems.
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Associated Press writer Geir Moulson in Berlin contributed to this report.
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